is a substantial piece of work. >>host: those are some of the upcoming titles from public affairs you are watching booktv aron c-span2.

>> let's move across the pacific ocean, it greg autry an entrepreneur, writing and educator focusing on china and is the senior economist for the american jobs alliance is an economist with the coalition for a prosperous america. he co-wrote with the movie death by china it has contributed to another book

the china wars and will talk today on death by china -- "death by china" confrnting the dragon - a global call to action." [applause] >> thank-you. coming to the university of california in orange california i will be a usc this fall. and i rarely get a chance to look out for those who don't think i am crazy net case. also with the ideology ironclad to hear you -- to have you here. of with like to stay and it for just a moment if i could we will do something absolutely crazy we will say the pledge of allegiance. are you ready? i pledge allegiance, to the

flag, of the united states of america. to the republic for which it stands, one nation, under god, under liberty for liberty and justice of all. did you say that in elementary school? it does matter. i don't agree 100 percent of what the previous speaker said and they will not agree 100 percent with me but the greatest day in is what allows us to have a disagreement and an active discussion so our nation can move forward. sometimes removed backward as we have discussed but each time we do that we find a way to move forward. this cannot happen in a country we will talk about now, china.

so i have the display who knows what 69318 is? you have probably seen the news story of the chinese government hacking american corporation. 69318 is a signal corps unit of the people's liberation army in the army finance by the chinese government one company put out a police report that shows that 70 percent of the us sophisticated hacking going on and for decades going on against the united states is coming from this building in shanghai. this is a problem for are recently my estimate was this is costing america

$400 billion per year. this is costing america '01 million lost jobs per year at a time when we cannot afford that at all. the former ambassador to china did a report recently with the report of 3.2 million jobs. this is the hundreds of billions of dollars it is more than 1 billion it is greater than the impact it happens every year and is done on purpose. i believed to hit is the iranian republican guard unit it would be a pile of rubble. but it is not. that begs the question why?

why are we best for enemies? we have the engagement policy the next -- a administration put in there i lived just down the road from the library, a team long dash please come visit the we have the gate to a policy to seek liberalization with the good term but i agree nobody is perfect but we would have the government to recover more tolerant -- to on dash tolerant and a huge export market to our relationship with china. then we would get geopolitical cooperation from the government from the united states abroad and progress on human rights so

first of all, do not by the tail there is a progress to democracy they he is the great liberal wiser to bring china for word it ain't happening there it -- they're still commies after all this year's usc niche are the red lines going up words with private enterprises in china and the blue bar goes down are the number of state-owned enterprises. sounds good? this is progress to economic capitalism what you are not getting told is the flat wine is the average asset size for a private company in china. flat. yes there are new and vibrant company's revenue -- run by a chinese because they're good business people but cannot get big because the topline is the average asset size controlled by the

communist party of china. the people are repressed economically by the government and used as a tool their hard work is being used to use sock dollars into china to empower large state-owned companies the with the 25 biggest companies every single one is a state-owned enterprise the biggest retailer is a state-owned enterprise it is not the vibrate capitalistic economy that you think if you go to shanghai you see a building that says general motors while they received are many they receive plants in detroit to open plants in china so gm the carr says buick that plan and said joint partnership that the chinese government forces

them into is 51% controlled by shanghai corporation controlled but gm flooded all of the money in the technology the chinese run it and in the long run i would it. and those mandated just last year for all lawyers in china i swear to faithfully fulfilled a sacred mission of workers is socialism of chinese characteristics eyes were my loyalty to the motherland to the people and uphold the leadership of the communist party of china in the socialist system. but does not sound like democratic reform to me but i would like 2.0 socialism with chinese characteristics is the word that we like our speaker talked about socialism it is nationalistic and socialist this is a fascist government calls itself communist and plays itself that way but in

the are fascist. i could go on about this but this line that goes up like a hockey stick is the trade deficit. now zero according to ricardo's theory this should that happen and should self correct but it doesn't. we have been doing this 30 years and i am a free trader in free marketer but you don't do business with criminals and expect to get a good deal. for 30 years the difference between our revenues and cost have been negative. what do you call that in a business school? recall that a loss. [laughter] the does does seem to make sense but some of my conservative friends want to keep doing this because at any moment something freaky magical will happen and we will have this wonderful

global peaceful super capitalistic economy to make us rich. it is not it makes the chinese rich. we need to be aware of that. if you run a loss every year for 20 years way to appoint the same ceo? when i force you to pull of the textbook by glenn hubbard the chief economic adviser forward george w. bush with the first administration talking about heidi make the ipad? he said it resembles the ipad it ships to apple for sale in the u.s.. then he says if the market conditions where the ipad

is made basically cannot wear the hat pad could be made. so he had 750,000 people making products for these companies putting the investment dollars into china. and here i am going around on a little tour on the world's largest factory and listen to what he has to say >> audio? >> i've put subtitle's and there i will try to run that began.

>>host: is that the free-market? no. if you do business with the mafia you empower the mafia. we have laws against that for a good reason. frankly i advocate laws that restrict our economic relationship so may free-market friends say american consumers benefit because we get cheap consumer products. that is true. i like the eiffel on five but how long does this last? [laughter] this is good for 80 months intel wine next upgrade

comes then it is shipped off to china where it is recycle. the chinese get a factory factory, productive capacity billions of dollars of american capital with the engine of wells? i don't think so. the economists need to get over the view of how free trade works. there are some vibrant things going on there those who are my friends. if you go there you can see these fabulous things. just like hitler did to add legitimacy to say then there

is this. then you go to shanghai to look across it is a beautiful. how did that happen? want to borrow something from our president. they didn't build a. this is foreign direct investment into all the countries of the role. guess who built the buildings? while detroit went bankrupt falling into lew decay your 401k dollars and the many in to american banks were shipped over to build china. of less you honestly believe state-owned enterprises by a communist regime are more efficient than the economy in america you have to accept with a one setter funding this.

listen to this quick video. this was from los angeles and was supported by the good democratic politicians in california with the miraculous choices this into what one vice president had to say when we confronted him at the auto show >> we are an all-american, all electric car company, based in los angeles comment on what makes us special is we are the first all the electric

all-american car company to cover a range of one-half to 50 miles with the five passenger four-door sedan headquarters downtown l.a. with marketing, engineering marketing, engineering, a financial headquarters in tweet assemble cars in california and in the bay area. this will have a u.s. mint we're selling this car in washington, oregon, californ ia are the watch markets across the country as well be are the fastest growing job employer in los angeles county. just a couple of weeks ago we had the mayor of california at, pardon me the governor of california the assemblymen and congressmen and other politicians and stakeholders from the local political government affiliate's here at the grand opening in downtown

los angeles. this is about 35% that we believe will have a significant impact on the automotive industry. >> your employees are american? corrects. >> what about percentage overseas? >> we have an american staff overseas but they are employed by us. >> i understand. >> you may not want to put all of that in there. >> 250 employees base out of casillas cowed -- california >> how many overseas? >> i've not sure. use the l.a. never -- number. >> 65%, one had to present.

>> no. >> we will not tell you that on film. [laughter] so this car is made by china's southwest with other things that also makes ak-47s to africa with the company that was busted for importing directly to the street gangs in los angeles. sova would back an organization i'd like that? then gentlemen with the of white hair at this summit is a guy named john bryson that help to work to china deal. notice of the u.s.-china economic cooperation with the chinese flag. if you know, anything of the symbolism of flags placement shows you who is

in charge literally. appointed commerce secretary of the united states like having the fox watch the head house other people involved are president clinton's former chief of staff. i could go on but we were supposed to get geopolitical cooperation? i could go through the list of for the people the chinese government support to undermine the united states that flushes the elephants ivory traded for the ak-47s and of course, the lapdog of north korea. what about human rights? yesterday i happen to be in congressman chris smith's office that i think is a hero and it was mentioned there is a rally on the mall

i went over there with some of my chinese friend asked me to talk it was 100 to the -- visible and 102 degrees to stand in front of those who truly appreciates what freedom means. they probably don't share the religion of anyone in the room i don't understand their belief system by due respect their right if they choose to go about their business peaceably. but while we were there a group of chinese tourist there is a law in washington d.c. with the kids led by the teacher walking to the monument and they saw there was the anti-communist party protest so the teacher began to lead them in a chant to overwhelm the speech that the congressman from texas was giving. children to bring them what america is about then to use

your communist ideology and rhetoric to fight against the freedom of religion to try to heckle a united states congressman but the chinese feel very free to tell americans how we should run our country. when henry kissinger went back in 1972 he said perhaps it is in the national character of americans to be taken in, and this is the story behind our engagement policy with china. they said yes. i tried to warn him but that is said and would like to take your question.

>> i am from liberty university and i wonder how america is justifying doing this business with china but not a single bet with cuba? >> frankly i have to put on my hat to a little bit that members of congress have to be elected it have to get the president back in to be appointed to do that they need money from the investment banks for those that give freely to both parties for those that they want to get to exploit the chinese labor market and lack of any regulation in order to drive short-term pop -- profits that they believe is the responsibility but to undermine though long-term prospect for the country and a nation that could be achieved in china so when it

comes to cuba and syria or bad behaving country except china. >> i thank you say it is truly not free trade? >> no. doing business as criminals and we need to reevaluate that's we never have that but it we do create mutual wealth you are absolutely right but when one party is a criminal regime using slave labor in prison camps to compete with us to make that error so thick you can to it that is a problem and it is not free. >> talk about the republican party how they pretend china is free? >> i mention those that were talking about but those of

the hierarchy are so into the word that any country regardless how despicable their behavior is seems justified. we did this before i think our guest we did this with hitler, henry ford and others we were enamored of the german miracle of course, what they nationalize to take away from them from the united states and our allies but we did hear when you do free trade with criminals you're not doing anybody any good in the long run. >> i live from the university in texas it with my economic development

class we wrote a book called bad samaritans that talked about western imperialism and how in the end to be imposed there and how they are bad samaras since in that way and it talks about state-owned enterprises and how this could be beneficial in some cases handed your opinion is there ever a time when a state-owned enterprise can be a beneficial? at least to get it started as a possible effort to be private owned or is it ever a good thing or is it always leading to a negative? >> excellent question. benjamin franklin started the u.s. postal service i wrote an editorial a couple years ago on earth day i said it is basically degenerated into unfair competition against private companies like ups and fedex and the delivery of junk

mail that nobody wants subsidized prices to keep a fleet of 300,000 little trucks driving around to soared in the truck so another fleet of government trucks takes it to the land fall -- a landfill there is the relationship of the government it could be a primary customer and then do industry franklin failed to devise a way for it to end but the united states government with the transcontinental railroad the internet was handed over to the public it developed a gps. the interstate highway system so there are times i honestly do believe government has a legitimate role but while long-term state owned enterprises not in anyone's interested you see what you will find corruption behind it.

>> it appears that to be taken in the statement the think the united states companies and government have got along so willingly as others? >> it is that simple. there is a famous bankrupt in the 30's when asked why it was you love them and misunderstood the question and said that is where the money is but we have created the environment in order to meet their government of the return on investment must

take advantage of this sun regulated environment because we have far too much regulation and when i and in california i think we have a in california i think we have a personal income tax that comes close to france we need to reform our rules so the motivations are to keep technology and manufacturing and capital reinvested and instead we have created an environment where short-term is all that counts and then creating a tax system please go anywhere else to do your business. >> when mark question. >> i am from echo valley california. we are in a bad debt crisis

here why does the honorable governor moonbeam brown. [laughter] when we need jobs in california why is he giving them to china? especially when working conditions are so bad in china? >> absolutely. his idea to create jobs is to create car business that employs 200 people in the united states and three at -- theoretically tens of thousands in china to undermine a great american industry to create 200 jobs because we only count on one side of the ledger the jobs created we don't count the others. the famous'' what is seen is not seen and so we don't see the destruction this continual focus on the short-term job creation creates instead of half playing the economic landscape of long-term prosperity. >> thank you